On December 12, 2007, the history of Hong Kong railways turned to a new page. The operation of all railways systems was merged under MTRC Limited. The KCRC ceased to be a railway operator and was ...
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On December 12, 2007, the history of Hong Kong railways turned to a new page. The operation of all railways systems was merged under MTRC Limited. The KCRC ceased to be a railway operator and was restructured into a government entity holding the KCR railway assets. Today, the challenges for the MTRC are far more complex than they were in the 1970s. MTRC Limited is a listed company of mixed public-private ownership, mixed legal framework, mixed business dealings in railways and property development, and it is subject to conflicting objectives of public interest and private profit. It seeks to expand its railway networks and diversify business to a wide range of non-railway matters in Hong Kong as well as overseas where the political and policy environments are diverse. More problematically, a complete merger with the management of the KCRC would take a few years.Less

Epilogue

Rikkie Yeung

Published in print: 2008-05-01

On December 12, 2007, the history of Hong Kong railways turned to a new page. The operation of all railways systems was merged under MTRC Limited. The KCRC ceased to be a railway operator and was restructured into a government entity holding the KCR railway assets. Today, the challenges for the MTRC are far more complex than they were in the 1970s. MTRC Limited is a listed company of mixed public-private ownership, mixed legal framework, mixed business dealings in railways and property development, and it is subject to conflicting objectives of public interest and private profit. It seeks to expand its railway networks and diversify business to a wide range of non-railway matters in Hong Kong as well as overseas where the political and policy environments are diverse. More problematically, a complete merger with the management of the KCRC would take a few years.

Part III of this book compares the experiences of the MTRC and the KCRC in new railway and property development. This chapter compares the strategies and experiences of new project governance of the ...
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Part III of this book compares the experiences of the MTRC and the KCRC in new railway and property development. This chapter compares the strategies and experiences of new project governance of the MTRC and the KCRC. Differences in project management strategies and political situations account for the KCRC's public controversies in railway projects. Both corporations went through an internationally unique experience during the Sino-British row over new railways; and they did not deal with those challenges in the same way for different reasons. In particular, both the Airport Railways and West Rail cases were related to Sino-British diplomatic tensions over Hong Kong's political transition but handled very differently.Less

Leading Railway Builder versus Controversial Project Manager

Rikkie Yeung

Published in print: 2008-05-01

Part III of this book compares the experiences of the MTRC and the KCRC in new railway and property development. This chapter compares the strategies and experiences of new project governance of the MTRC and the KCRC. Differences in project management strategies and political situations account for the KCRC's public controversies in railway projects. Both corporations went through an internationally unique experience during the Sino-British row over new railways; and they did not deal with those challenges in the same way for different reasons. In particular, both the Airport Railways and West Rail cases were related to Sino-British diplomatic tensions over Hong Kong's political transition but handled very differently.

With the merger of the MTRC and the KCRC in 2007, the history of Hong Kong's railways turned a new page. The two government-owned corporations were exceptionally profitable. Yet, this commercially ...
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With the merger of the MTRC and the KCRC in 2007, the history of Hong Kong's railways turned a new page. The two government-owned corporations were exceptionally profitable. Yet, this commercially successful railway model was not without social costs and political controversies. This book examines the governance history of the MTRC and the KCRC over the past three decades, and sheds light on the challenges to Hong Kong's railway after the merger. The book discusses complex relationships between railway management, government policy, and politics. Critical issues are analysed, including corporate governance; railway-property development; funding and managing new projects; mismanagement and controversies; public accountability; and passenger interest in fares, choice, and convenience. The book compares how differently the MTRC and the KCRC dealt with the government, civil society, the market, and with each other to achieve commercial objectives and tackle public interests issues in a post-industrial society, where public expectations are rising despite constraints in democracy.Less

Moving Millions : The Commercial Success and Political Controversies of Hong Kong's Railway

Rikkie Yeung

Published in print: 2008-05-01

With the merger of the MTRC and the KCRC in 2007, the history of Hong Kong's railways turned a new page. The two government-owned corporations were exceptionally profitable. Yet, this commercially successful railway model was not without social costs and political controversies. This book examines the governance history of the MTRC and the KCRC over the past three decades, and sheds light on the challenges to Hong Kong's railway after the merger. The book discusses complex relationships between railway management, government policy, and politics. Critical issues are analysed, including corporate governance; railway-property development; funding and managing new projects; mismanagement and controversies; public accountability; and passenger interest in fares, choice, and convenience. The book compares how differently the MTRC and the KCRC dealt with the government, civil society, the market, and with each other to achieve commercial objectives and tackle public interests issues in a post-industrial society, where public expectations are rising despite constraints in democracy.

The book examines the struggles to success, and the controversies and dilemmas of the Hong Kong railways through the political-corporate history of the MTRC and the KCRC. In many ways, this history ...
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The book examines the struggles to success, and the controversies and dilemmas of the Hong Kong railways through the political-corporate history of the MTRC and the KCRC. In many ways, this history of Hong Kong railways reflects the socio-political struggles of the city during its modernisation over the past three decades. People in this exciting city are always busy catching up with fast-changing developments. But somehow similar issues and problems keep repeating themselves. The rest of this chapter explains the relevant analytical framework and concepts adopted in this book, the book's structure and outlines the critical issues affecting Hong Kong railways. The analysis and evaluation in this book focuses on the perspectives of the public interests of railway governance.Less

Railways as Part of the Hong Kong Miracle

Rikkie Yeung

Published in print: 2008-05-01

The book examines the struggles to success, and the controversies and dilemmas of the Hong Kong railways through the political-corporate history of the MTRC and the KCRC. In many ways, this history of Hong Kong railways reflects the socio-political struggles of the city during its modernisation over the past three decades. People in this exciting city are always busy catching up with fast-changing developments. But somehow similar issues and problems keep repeating themselves. The rest of this chapter explains the relevant analytical framework and concepts adopted in this book, the book's structure and outlines the critical issues affecting Hong Kong railways. The analysis and evaluation in this book focuses on the perspectives of the public interests of railway governance.

Part II of this book contrasts the organisational history of the MTRC and the KCRC with a focus on their corporate governance arrangements and issues. This chapter compares the establishment, ...
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Part II of this book contrasts the organisational history of the MTRC and the KCRC with a focus on their corporate governance arrangements and issues. This chapter compares the establishment, legal-formal governance arrangements and a history of organisational transformation of the two railway corporations. It explains that a basically similar legal-formal model was applied to both the MTRC and the KCRC but specific government policy differences put the two corporations on different paths in the years to come. Four specific topics are discussed: the historical public debates on the organizational transformation and corporate governance from the 1970s to the new millennium; how the MTRC model was adopted and modified in the establishment of the KCRC in the early 1980s; the year 2000 when the MTRC was restructured into a listed company; and the formal mechanisms of accountability and public control of both railways.Less

Pioneer MTRC versus KCRC Bureaucracy

Rikkie Yeung

Published in print: 2008-05-01

Part II of this book contrasts the organisational history of the MTRC and the KCRC with a focus on their corporate governance arrangements and issues. This chapter compares the establishment, legal-formal governance arrangements and a history of organisational transformation of the two railway corporations. It explains that a basically similar legal-formal model was applied to both the MTRC and the KCRC but specific government policy differences put the two corporations on different paths in the years to come. Four specific topics are discussed: the historical public debates on the organizational transformation and corporate governance from the 1970s to the new millennium; how the MTRC model was adopted and modified in the establishment of the KCRC in the early 1980s; the year 2000 when the MTRC was restructured into a listed company; and the formal mechanisms of accountability and public control of both railways.

This chapter reviews the MTRC's corporate history of struggling for financial survival to high profitability, interactions between the managing board and management, and evolution of corporate ...
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This chapter reviews the MTRC's corporate history of struggling for financial survival to high profitability, interactions between the managing board and management, and evolution of corporate strategies under different corporate leaders. The MTRC is one of the largest local property developers in Hong Kong. It has completed over 33 residential estates, office buildings, shopping centres, hotels, and car parks. The MTRC is innovative and aggressive in other commercial businesses, more so than the KCRC. In early years, the MTRC did struggle hard. For financial survival, it had to be prudent, innovative, and follow international standards in financial and business management. Over the years, the MTRC has developed a strong culture of corporate professionalism, commercial orientation, and autonomy from the government.Less

MTRC's Struggles for Profits and Autonomy

Rikkie Yeung

Published in print: 2008-05-01

This chapter reviews the MTRC's corporate history of struggling for financial survival to high profitability, interactions between the managing board and management, and evolution of corporate strategies under different corporate leaders. The MTRC is one of the largest local property developers in Hong Kong. It has completed over 33 residential estates, office buildings, shopping centres, hotels, and car parks. The MTRC is innovative and aggressive in other commercial businesses, more so than the KCRC. In early years, the MTRC did struggle hard. For financial survival, it had to be prudent, innovative, and follow international standards in financial and business management. Over the years, the MTRC has developed a strong culture of corporate professionalism, commercial orientation, and autonomy from the government.

This chapter highlights the challenges to their profitable property development model especially in the last few years, the emergence of environmental issues in new projects since the late 1990s, and ...
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This chapter highlights the challenges to their profitable property development model especially in the last few years, the emergence of environmental issues in new projects since the late 1990s, and how different responses from the MTRC and the KCRC led to contrasting outcomes. Their extensive involvement in both railway and property development had profound impacts on the urban and rural environments in Hong Kong in both positive and negative ways. As in other aspects of corporate and project governance, the KCRC experienced more controversies whereas the MTRC turned some of the public concerns into its own business interest.Less

Property Development and Environmental Impact of Projects

Rikkie Yeung

Published in print: 2008-05-01

This chapter highlights the challenges to their profitable property development model especially in the last few years, the emergence of environmental issues in new projects since the late 1990s, and how different responses from the MTRC and the KCRC led to contrasting outcomes. Their extensive involvement in both railway and property development had profound impacts on the urban and rural environments in Hong Kong in both positive and negative ways. As in other aspects of corporate and project governance, the KCRC experienced more controversies whereas the MTRC turned some of the public concerns into its own business interest.

The main themes of Part IV concern how the MTRC and the KCRC confronted operational challenges and handled the social benefits and costs in relation to the passenger interests. This chapter looks ...
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The main themes of Part IV concern how the MTRC and the KCRC confronted operational challenges and handled the social benefits and costs in relation to the passenger interests. This chapter looks into the evolving politics in three aspects of passenger interest: railway fares, passenger choice through competition, and passenger convenience through collaboration among railways and other transport operators. The discussion recounts the political tug-of-war on fare autonomy, how and why in recent years the government tried to change the policy that it had defended for decades, and changes in the politics of transport competition and collaboration. Again, the MTRC and the KCRC did not always respond to the challenges in the same way.Less

Passenger Fares, Choice and Convenience

Rikkie Yeung

Published in print: 2008-05-01

The main themes of Part IV concern how the MTRC and the KCRC confronted operational challenges and handled the social benefits and costs in relation to the passenger interests. This chapter looks into the evolving politics in three aspects of passenger interest: railway fares, passenger choice through competition, and passenger convenience through collaboration among railways and other transport operators. The discussion recounts the political tug-of-war on fare autonomy, how and why in recent years the government tried to change the policy that it had defended for decades, and changes in the politics of transport competition and collaboration. Again, the MTRC and the KCRC did not always respond to the challenges in the same way.

Part V of this book reflects on the past and looks to the future. This chapter concludes the book with the key factors explaining the differences between the MTRC and the KCRC. It discusses the ...
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Part V of this book reflects on the past and looks to the future. This chapter concludes the book with the key factors explaining the differences between the MTRC and the KCRC. It discusses the dilemmas of the current railway model, introduces key reform options gleaned from international experience and finally examines the intriguing politics and challenges of the “merger” reform. The discussion reflects on how the ideas behind the merger came about politically; analyses the rationales and implications of the policy changes, and the winning and losing parties in the deal; explains the complexities of the decision that needs to be made, and why gaps for a new and better railway model for Hong Kong are yet to be filled by the government's merger reforms.Less

The Future: Two Railways Becoming One?

Rikkie Yeung

Published in print: 2008-05-01

Part V of this book reflects on the past and looks to the future. This chapter concludes the book with the key factors explaining the differences between the MTRC and the KCRC. It discusses the dilemmas of the current railway model, introduces key reform options gleaned from international experience and finally examines the intriguing politics and challenges of the “merger” reform. The discussion reflects on how the ideas behind the merger came about politically; analyses the rationales and implications of the policy changes, and the winning and losing parties in the deal; explains the complexities of the decision that needs to be made, and why gaps for a new and better railway model for Hong Kong are yet to be filled by the government's merger reforms.